The Bangladesh Sustainable and Renewable Energy Association (BSREA) has urged the government to prioritise renewable energy as a sustainable solution to the country’s deepening energy crisis.
The call came at a press conference held at the National Press Club in Dhaka on Monday, according to a statement.
BSREA leaders said continued dependence on imported fuels poses long-term risks, as Bangladesh relies on imports for more than 60 per cent of its energy demand.
In a written statement, the association said the country is facing a severe energy crunch driven by rising global fuel prices, import dependence, and pressure on foreign exchange reserves.
It said the government is spending over Tk200 crore a day in subsidies to manage the cost of liquefied natural gas (LNG), coal, and oil used in power generation, calling the approach unsustainable.
BSREA President Mostafa Al Mahmud said renewable energy, particularly solar, offers the most cost-effective and environmentally friendly pathway, but the sector lacks adequate policy support.
Import duties and taxes on renewable energy equipment currently range between 50 and 60 per cent, discouraging investment, while conventional energy continues to receive incentives, creating what the association described as a policy imbalance.
BSREA cited countries such as Pakistan, India, Vietnam, and China, which have accelerated renewable adoption through tax exemptions, reduced duties, and easier financing.
In Bangladesh, high tariffs on lithium-ion batteries and energy storage systems remain a major barrier, it said.
The association also pointed to global market volatility, noting geopolitical tensions, particularly involving the United States and Iran, have pushed Brent crude prices to between $115 and $120 per barrel.
Risks around the Strait of Hormuz, a key global energy route, have further heightened uncertainty, it said.
BSREA warned that gas supply shortages are already affecting power generation, with demand exceeding 2,500 million cubic feet per day against supply of 850 to 900 million cubic feet per day, potentially creating a generation deficit of up to 1,800 megawatts.
Strategic fuel reserves can meet demand for only 35 to 40 days, far below international standards, it added.
The crisis is also hitting industries, particularly the readymade garment sector, where production has dropped by 30 to 40 per cent due to gas shortages and load shedding, risking export earnings.
BSREA leaders said the situation reflects structural weaknesses and called for a shift to renewable energy to ensure long-term stability.
The association recommended reducing duties on renewable technologies, introducing zero tariffs on lithium-ion batteries, and ensuring long-term low-interest financing.
It also called for implementing stalled solar projects, relaunching rooftop solar initiatives, simplifying net metering, expanding solar irrigation, and offering tax incentives to investors.
“With the right policy support and investment, renewable energy can play a transformative role in strengthening Bangladesh’s energy security,” the association said.
